HARDY WINE TO BENEFIT FROM DROUGHT
Constellation Brands’ Hardy Wine Company, the largest wine producer in Australia, is expected to reduce its output by almost 20% this year due to bad weather, according to local newspapers.
This is good news for Constellation after announcing last week that the company was having difficulties with the Australian grape glut, prompting much lower wine prices in the U.K.
Despite the encouraging report, Hardy’s managing director David Woods warns that the company will still “need a couple of vintages to get it back in hand.”
Shares of Constellation were down for the second day last Friday (Jan. 5) after plunging more than 11% on news that the company had missed expectation in the fiscal 3rd-quarter. Is the worst behind STZ? Many in the industry think not, but only time will tell.
Others in the Australian wine industry are taking a stand against what they call “predatory prices” in the U.K.
Wine Grape Growers Australia (WGGA) criticized offers of $117-156 as “predatory” and urged its members not to sign supply agreements until they have a “full picture” of the 2007 vintage.
This is good news for Constellation after announcing last week that the company was having difficulties with the Australian grape glut, prompting much lower wine prices in the U.K.
Despite the encouraging report, Hardy’s managing director David Woods warns that the company will still “need a couple of vintages to get it back in hand.”
Shares of Constellation were down for the second day last Friday (Jan. 5) after plunging more than 11% on news that the company had missed expectation in the fiscal 3rd-quarter. Is the worst behind STZ? Many in the industry think not, but only time will tell.
Others in the Australian wine industry are taking a stand against what they call “predatory prices” in the U.K.
Wine Grape Growers Australia (WGGA) criticized offers of $117-156 as “predatory” and urged its members not to sign supply agreements until they have a “full picture” of the 2007 vintage.
posted at 1:56 PM
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